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MGMT 310 MIDTERM STUDY GUIDE-

Terms in this set (29)

Entrepreneurship
Implement new ways to solve problems and create value, taking an idea and transforming it to a repeatable and scalable business. Pursuit of opportunity without regard to resources currently controlled.
3 primary sources of ideas:
Trends
Gaps- often identified when people become frustrated because they can't find a product/service they need (Bees Wrap, Kazoo toy store, Daisy Rock guitars)
Problems
creativity
is the ability to produce new and unique ideas and/or to identify new and different ways of looking at a problem and opportunities.
innovation
is the implementation of new ideas that create value.
Design thinking
Creative process that helps you design meaningful solutions. A way to define and solve tough challenges. Focuses on rapid prototyping solutions and learning from mistakes
5 key elements of design thinking model
Empathize
Define
Ideate
Prototype
Test
characteristics of design thinking mindset
-Human-centered- Understands the needs and motivations of people
-Optimistic- Believes we can all create change
-Collaborative- Benefits greatly from views of multiple perspectives
-Experimental- Failing and trying anew is essential as well as learning from mistakes
pivot
A significant change in (at least) one of the core components of ones business model
*4 main components of the feasibility analysis-
-product/service
-industry/market
-organizational
-financial
Product/service feasibility
will it work? Does it make sense? Solve a problem? Play on a trend?
Determine Desirability- Talk to customers, Conceptual test, target market, benefits position, buying intentions survey, internet, Gumshoe research
Technical viability- well-made? Works well? How many customers, return rate? Can it do what founders say it can do
industry/market feasibility
An assessment of the overall appeal of the product/service to the industry and target market.

An industry is attractive when it's Young, early in its life cycle, fragmented, growing, barriers to entry, no dominant players, trends, innovation.....
A target market is attractive when Smaller, (but growing!)
organizational feasibility
Does an organization have sufficient expertise, organizational competence, and resources to launch?

management process
who makes up the venture team
resource sufficiency
Financial feasibility
A preliminary financial assessment, what would you want to know?

Total start up cash needed
Financial performance of similar businesses
Overall Financial Attractiveness
Business model canvas-
A firm's plan or diagram for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on profits it earns
9 canvas components
Customers- people who pay you for your work
Value Proposition- what you do for customers, in their words
Channels- How you reach and stay in touch with your customers to deliver value
Customer Relationships- Your ongoing relationships with your customers
Revenue- How you are paid
Costs- the basic costs you incur to provide value
Key Activities- The basic actions you need to provide value
Key Resources- The essential things you need to deliver value through activities
Partners- Entities that can help you deliver value
indusrt analysis-
*Five forces analysis- Porter's five forces is a framework for analyzing a company's competitive environment.
Five forces analysis components
rivalry/competition
power of buyers
powers of suppliers
threat to entry
substitutes
rivalry/competition
The larger the number of competitors, along with the number of equivalent products and services they offer, the lesser the power of a company. Suppliers and buyers seek out a company's competition if they are able to offer a better deal or lower prices. Conversely, when competitive rivalry is low, a company has greater power to charge higher prices and set the terms of deals to achieve higher sales and profits.
power of buyers
The smaller number of customers, the greater their power. The larger the volume, the greater the bargaining power. The smaller number of suppliers, the less opportunity customers have to shop around. The cost of switching. The threat of integrating backwards to suppliers will increase power.
power of suppliers
Uniqueness of units supplied. Competition for the input for other industries. Number and size of firms supplying the resource. Switching costs to change suppliers. Offer differentiated products.
threat to entry
Barriers to entry include economies of scale, well established brands, restricted distribution channels, high capital requirements, government policies/regulations
substitutes
Substitute goods or services that can be used in place of a company's products or services pose a threat. Companies that produce goods or services for which there are no close substitutes will have more power to increase prices and lock in favorable terms.
high industry profits associated with- (vis versa for low)
Weak Suppliers
Weak Customers (buyers)
High entry barriers
Few opportunities for substitutes
Little Rivalry
gopro case
intro to MGMT & entrepreneurship- gopros future, how it became and what is to come for their business.
one-wheel Scooters
opportunities for product- one wheel changing it, so expensive but a new way of sport/transportation.
hospitals embracing fine dining
Design thinking, lay out of hospital and how it increased comfortability & hospitality for all stays. became one of the best hospitals due to change.
segways
feasibility analysis- wasn't feasible, not set up for success in real life, did not consider the target market just assumed success. sales completely disappointed the predicted amount. became a tourist attraction
Classpass
BMC, how class pass is taking advantage of empty gyms/classes and growing due to accessibility of all gyms.
craigslist
industry analysis, 5 forces- competition, substitutes, power of buyers, power of suppliers, threat to entry
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